HEADLINE: FG SET TO DELIVER 400,000 BARRELS OF CRUDE TO DANGOTE REFINERY.

HEADLINE: FG SET TO DELIVER 400,000 BARRELS OF CRUDE TO DANGOTE REFINERY. 

7th October, 2024

By
MARTINS KENNETH

The Federal Government has announced plans to deliver up to 400,000 barrels of Nigerian crude oil daily to the Dangote refinery under its naira-for-crude agreement. 

A report by Bloomberg stated this on Monday, where it said the significant development is expected to take place over the next two months, amounting to 24 million barrels of Nigerian supply between October and November 2024.

This increase in processing capacity could have substantial implications for both the refinery’s operations and the local oil industry, transforming the region’s import and export markets.

This new development follows the announcement by the Federal Government that the naira-for-crude deal has commenced.

According to cargo allocations reviewed by Bloomberg News, Dangote’s increasing reliance on local feedstock will disrupt the Atlantic oil market by substantially decreasing Nigeria’s crude exports.

The 650,000-barrel-a-day plant — larger than any other in Africa or Europe — will claim 13 to 14 shipments from Nigeria’s typical monthly program of about 50 cargoes.